Charitable Assets in
a Volatile Market
With a faltering stock market, rapidly rising inflation, and higher interest rates, many investors are thinking hard about how best to navigate through the challenges of 2022.
As a Minneapolis Foundation donor, you may also be wondering how we are managing the charitable assets you have entrusted to us. The Minneapolis Foundation has a 107-year track record of stewarding investments to align with the charitable goals of the individuals, families, and businesses that establish funds with us. Our team of in-house professionals monitors market conditions carefully, consulting regularly with our investment consulting firm, NEPC, as well as the Investment Committee of our Board of Trustees.
We manage five investment strategies that reflect the diverse goals of our donors. Your Donor Advised Fund assets are invested in one of these strategies based on your risk tolerance, investment priorities, and the time horizon for your grantmaking.
Below, you’ll find responses to a few questions that may be on your mind. As always, please don’t hesitate to reach out to your Philanthropic Advisor if you have additional questions.
What changes, if any, is the Foundation making in its portfolios to react to recent market conditions?
We have not changed the Foundations’ portfolio strategies as a result of 2022 inflation and rising interest rates, although the investment managers within our strategies may be making tactical (short term) decisions within the portfolios we have hired them to oversee. We do not direct our underlying managers to make tactical moves or to coordinate with us to make short-term moves in reaction to current economic and market circumstances.
Our investment consultant, NEPC, provides us with regular updates about how they view current conditions. If you are interested in learning more about their approach, the Insights section of NEPC’s website is a great place to start.
How is the portfolio in which my Donor Advised Fund assets are invested doing?
We provide all our donors with quarterly reports on the strategy in which your Donor Advised Fund assets are invested. If you would like more detail about its recent performance, please reach out to your Philanthropic Advisor. If your grantmaking plans or risk tolerance have changed and you believe that a change in your investment strategy may be appropriate, we would be glad to discuss your options, giving clear expectations of risk, volatility, and time horizon.
Does the Foundation offer an investment option that has an ESG or socially responsible focus? If so, how has it been performing during the downturn?
Yes, we do offer a strategy that focuses on socially responsible growth. This strategy has been realigned and numerous managers have been added during the past six months. The last piece of the equity allocation was invested as of June 30, so it has not been in existence long enough for us to provide an accurate measure of how its performance has changed in the recent market downturn. If you would like 2022 performance data for this investment strategy, please reach out to your Philanthropic Advisor.